How is a Workers’ Comp Settlement Paid Out?

Understanding How a WC Settlement is Paid Out: Workers’ Compensation Lawyer Explains

After being injured in a workplace accident, one of the most important things you want to know is how your workers’ compensation will be paid out to you. This is because, although your life may briefly pause while you are recovering from a workplace injury, unfortunately, the monthly mortgage or rent, utility bills, car expenses, food bills, and other monthly expenses will not pause. In addition to these regular bills, new and unexpected medical bills will begin to accumulate. Therefore, once you have settled your WC claim, you need to know how your settlement claim would be paid. Our workers’ comp attorney in Philadelphia breaks down how the settlement works. Initially, it is important to realize that settlements are not offered in every WC case. This is because some claims are better served with regular payments and monitoring the status of a disability. But in some instances where an individual is catastrophically injured, or the payments have continued for many years, a lump sum settlement or structured settlement is appropriate.

Types of Workers’ Compensation Settlements

There are generally two types of settlements. One is a lump-sum settlement and the other one is a structured settlement. There are differences and benefits with both. The largest difference is how they are paid out.

Lump Sum Settlements

This is one extensive check or lump sum paid to a WC claimant. It is usually given when there is a permanent disability or prolonged injury taking several years. These are offered when claimants do not want to deal with the time-consuming claims process. It could also be paid when an individual has a big surgery or expense coming, which a lump sum can be helpful to resolve.

As the name implies, the claimant receives a single check to resolve the WC claim. Counsel fees and costs expended by the firm may be taken from that amount. Taxes are not generally taken out in WC benefits.

Structured Settlements

Rather than one lump sum, an individual taking a structured settlement will receive periodic payments set every month, year, or period of years. The structured settlement payments could even occur for over a decade or more, depending on the type of claim and the agreement reached. The benefits are mainly about sheltering from tax implications.

The initial check usually covers attorney’s fees, costs, and other related expenditures for your case. It may also be a larger payout to help cover some bills. However, there are instances where an attorney could take their fees in the scheduled, structured settlement payments instead.

Ask Us for Help With Your Settlement

Whether you have just been injured or are negotiating a WC settlement, having an experienced workplace injury attorney on your team is critical to maximize your recovery and ensure your settlement is fair. Although it may be tempting to settle your WC claim without the help of a lawyer, oftentimes individuals employing a lawyer will earn a higher recovery and receive their money quicker and with fewer issues or uncertainty that could surround payment.

These settlements can be complicated and based on the level of disability, life expectancies, lost wages, likely future medical costs, and all adjusted for inflation. The calculus can be overwhelming. Having a workers’ comp lawyer to ensure all of the math is correct can protect your rights. In addition, having counsel can also ensure that your settlement is properly calculated and you receive the correct amount of funds that you have agreed to accept.

If you have questions regarding your workplace injury, call our workers’ compensation attorneys in Pennsylvania at Larry Pitt and Associates to schedule a FREE case evaluation by dialing (888)-PITT-LAW or (877) 748-8529, or by sending a private and confidential message on our easy-to-use contact us box available here. We have over 40 years of experience handling and safeguarding the rights of people in Pennsylvania. Let us help you.



Larry Pitt

Larry Pitt

If you've been injured, Larry Pitt & Associates can provide you with the legal assistance and representation you need to ensure that justice is served. Get in touch today for a free consultation to discuss your case. Whether it’s a work injury, auto accident, medical malpractice, or any other injury-related matter, we are here to help make sure your rights and interests are respected. We understand the stress and frustration that can accompany an injury, and we are committed to providing thorough legal guidance and support throughout the entire process.